By John Tippins – Regional Strategy Director, UM MENAT
Esports is an area rich with opportunities for brands and advertisers. The scale of the events, the audiences these attract, and the fervor of the fans should not be underestimated. But it is often a misunderstood area; conflated or confused with the wider gaming landscape. Some in our industry (and beyond) still call into question its legitimacy as a sport and they haven’t fully grasped both its commercial and consumer potential.
Despite the significant growth and investment in Esports, several myths persist, creating perceived barriers for brands considering entry into this space. In this article, we will address and debunk the five most prominent myths, aiming to not only reassure brands but also excite them about the immense potential that Esports offers.
1. It’s not a real sport and players are not real athletes
Critics often dismiss Esports as less physical, arguing it shouldn't be considered a traditional sport. This perspective overlooks the intense mental and physiological efforts involved. Professional e-sports players train for hours daily, honing their skills, and often undergo rigorous physical fitness assessments and regimens to maintain stamina and reflexes.
The International Olympic Committee recognized Esports' legitimacy by hosting an exploratory virtual event in 2021 and the inaugural Olympic E-Sports series in 2023. In MENA, where traditional sports are revered and costly, Esports offers brands fresh sponsorship and partnership opportunities.
2. Esports only appeals to gamers
Esports doesn't only appeal to a niche gaming audience. Projections indicate that the global audience will surpass 640 million by 2025. MENA Esports events showcase a diverse demographic: at the Dubai GameExpo 2024, 45% of attendees were aged 18-24, 35% were 25-34, and 20% were over 35. Additionally, 40% were female, demonstrating a healthy gender balance.
A YouGov study in KSA and UAE found that 60% of Esports viewers were employed professionals and 25% were students. This broad audience with significant disposable income presents a lucrative opportunity for brands.
3. Mainstream appeal is still minimal
The diverse audience makeup highlighted has caught the attention of media networks. Esports events are now broadcast on mainstream TV channels, drawing millions of viewers worldwide. Major networks and streaming platforms are investing heavily in e-sports content, recognizing its power to engage large audiences.
Esports tournaments are increasingly hosted in major cities across the region. The PUBG Mobile Star Challenge in Dubai drew over 15,000 live spectators and millions of online viewers, while MENA's largest gaming event, the Middle East Games Con, attracts tens of thousands annually. These events generate substantial media coverage, offering brands a chance to position themselves at the forefront of a burgeoning cultural phenomenon.
4. Only relevant to certain types of brands e.g. tech
While tech brands were early adopters in the Esports world, it's no longer just their domain. Advertisers uncertain about their brand's fit should take note of the diverse range of categories now engaging with Esports.
From CPG and fashion to automotive and banking, non-tech brands are increasingly exploring Esports associations. In MENA, the QSR category is particularly active, with KFC Arabia partnering with various Esports tournaments to tap into a young, digitally native audience. Major global brands like Mercedes-Benz and Coca-Cola have also increased their investment in esports in the region. The diversity of brands involved highlights Esports as a truly democratic opportunity for advertisers.
5. ROI is negligible
A common myth is that the ROI from Esports is minimal compared to traditional sports due to its nascent growth. However, data shows that Esports can sometimes outperform traditional advertising channels.
According to a YouGov report, Esports sponsorships in the region can deliver a 25-30% higher ROI than traditional sports sponsorships, proving its financial viability. Brands can generate substantial returns through sponsorship deals, live stream advertising, and merchandise sales. The interactive nature of Esports also enables innovative marketing strategies, like in-game advertising and influencer partnerships, offering unique opportunities for engagement.
Now is a prime time for investment in Esports, and the potential rewards for those who embrace this growing industry will be substantial and long-lasting.
In image above: John Tippins – Regional Strategy Director, UM MENAT
